Han media: "Trump gave Japan too much", the US automotive industry continues to protest!

On July 31, South Korean media "Herald Economy" published an article stating that the US automotive industry criticized the results of the US-Japan trade negotiations as insufficient to address the trade imbalance between the two countries.

US President Trump reached a trade agreement with Japan on the 22nd, reducing the tariff on Japanese goods from the previously announced 25% to 15%. In return, Japan promised to invest $55 billion in the United States.

The US will also reduce the additional tariff on Japanese cars from 25% to 12.5%, and the tariff on Japanese cars has been raised from the current 2.5% to 15%.

However, the US industry pointed out that this negotiation result is not in line with President Trump's original intention to restore trade balance with other countries and revitalize domestic manufacturing, saying that President Trump gave Japan too much.

These concerns are particularly prominent in the automobile industry. About 80% of the US trade deficit with Japan is composed of automobiles and auto parts, so there is an opinion that lowering the tariff on Japanese cars will have a negative impact on the three major American car companies: General Motors, Ford, and Stellantis.

Mat Brown, chairman of the American Automotive Policy Council (AAPC), representing these companies, said that lowering the tariff on imported Japanese cars is a "bad deal" for the American automotive industry and workers.

However, US Commerce Secretary Howard Lutnick said that the industry's complaints were "silly," and that the manufacturing executives he spoke with were "satisfied" with this decision.

He said, "If our competitors' tariffs are reduced from 25% to 15%, it might be a bit disappointing, but if you produce in the United States, you won't have any tariffs."

Lutnick said during an interview with Bloomberg Television, "The outcome of this negotiation will increase pressure on South Korea and Europe to make further concessions, otherwise the car manufacturers of these countries will face significant disadvantages."

On the other hand, Bloomberg pointed out that it is still unclear whether Japan's $55 billion investment commitment will be fulfilled.

Original: https://www.toutiao.com/article/1839150837954560/

Statement: This article represents the views of the author.